Petroleum Board increases tariff for gas grid system by 10%

30 Jun 2023 , 12:41 PM

The Petroleum and Natural Gas Regulatory Board increased the unified tariff for the national gas grid system by 10%, to 81.1 per mmbtu from 73.9 mmbtu. The rates will be effective from July 1, 2023.

From April 1, the regulator implemented a unified tariff for natural gas pipelines in order to boost gas consumption by customers in areas far from supply centres.

Customers are charged a unified tariff, while pipeline operators receive varying tariffs based on the distance. To facilitate this, three tariff zones have been introduced. The first zone extends up to 300 kilometers from the gas source, the second zone spans from 300 to 1,200 kilometers, and the third zone covers distances beyond 1,200 kilometers.

As per regulatory guidelines, the tariff for the first zone has been set at Rs 40 per mmbtu, while the second zone carries a tariff of Rs 79 per mmbtu. The third zone attracts a higher tariff of Rs 114.5 per mmbtu.

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